Car insurance is one of those necessary expenses you have when you own a car. In fact, most states require you to have car insurance unless you want to get in trouble with the law. However, there is no reason why you have to spend a lotof money to make sure your car has the right amount of insurance coverage. To save money on auto insurance, keep these helpful tips in mind.
Consider usage-based insurance
If you do not use your car often – for example, if you prefer to take public transportation to work – you should ask your insurance carrier about usage-based coverage. This type of insurance determines your monthly premium based on the mileage on the odometer or an electronic device installed on your car. The latter option records driving data – speed, acceleration, braking, etc. – and then that information is compiled to calculate how much you have to pay each month. This is a great way to save money.
Buy car insurance through a warehouse club
Giant boxes of cereal and rolls of tissue paper are not the only things warehouse stores like Sam’s Club or Costco sell; you can also buy car insurance! Most people do not know these stores partner with many major insurers to offer group discounts to club members. The next time you head into one of these stores, add auto insurance to your shopping list.
Take a defensive driving class
Another overlooked option, mostly because taking a driver’s ed class is not on anyone’s to-do list, you can easily save up to 10% on your car insurance when you register and complete the course. Another benefit? You do not have to waste an entire day sitting in a classroom to take the course. You can take a defensive driving courseonline, finish the course, and show your insurance company proof you have completed it and get a discount.
Shop around for auto insurance
You would be surprised how many people do not shop around for insurance. Most do not go this route because they feel it is a hassle, but the hassle is well worth it when you see how much money you will be saving! Like other businesses, insurance companies compete for customers and will gladly shave off dollars from your premiums to have you as a customer. Do your research, find out how much coverage you are looking for, and speak to an insurance agent when you are ready. Saving money on car insurance is much easier than people think; a little knowledge and research will help you save money in the long run. Take our advice, run with it, and you will reduce your monthly premiums in no time.